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India-based InsuranceDekho is reportedly planning to acquire its competitor RenewBuy in a deal that could consolidate the insurance distribution sector.

The transaction, which is expected to be a share-swap deal, will value RenewBuy at approximately Rs30bn ($350m) and InsuranceDekho at around Rs50bn ($600m), potentially creating a near Rs80bn ($1bn) combined entity.

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Three sources familiar with the matter have disclosed that RenewBuy’s investors will receive shares in InsuranceDekho upon the combination of the businesses.

This exchange will be proportionate to the valuations of the two companies.

RenewBuy’s backers include Dai-ichi Life Holdings, Apis Growth Fund, Lok Capital, and IIFL Asset Management Company. According to data from Tracxn, RenewBuy has so far raised $141m.

Several early investors and angel backers of RenewBuy may opt for a complete or partial exit, selling their shares as part of the deal.

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“The exact contours of the deal are still being worked on, but some of the early investors of RenewBuy may get a complete or a part-exit through the secondary sale of shares,” one of the individuals briefed on the deal stated.

In a secondary share sale, the proceeds go to the existing investors rather than the company.

RenewBuy is an online distribution platform offering a wide range of life and general insurance policies, along with other financial products.

It provides expert advice, simplifies the selection process, and helps find suitable products in the RenewBuy marketplace.

InsuranceDekho, a subsidiary of Girnar Insurance Brokers, is an insurtech venture that allows consumers to compare various insurance policies.